Company Announcement No 43/2025 - August 26, 2025
EBIT growth of 11% driven by solid topline growth and margin expansion
Key Highlights H1 2025
- Reported volume and net revenue growth of 4%
- Reported EBIT increased by 11%, with an 80-bps margin expansion, driven by improved operational efficiency
- Group performance was in line with our plans, despite a relatively cold weather in Q2 in our key Finnish market. Good July weather in Finland closed part of the Q2 shortfall
- Very strong performance in Italy, France and the International segment
- Market share gains across most categories and geographies reflecting strong commercial execution
- 18% EPS growth, driven by stronger profitability
- Cash flow for H1 2025 was in line with our plans, and a new share buy-back program of DKK 300m is launched
- Financial outlook ranges narrowed - we now expect 5-6% net revenue growth (previously 5-7%) and 8-12% EBIT growth (previously 7-13%) for full year 2025
CEO Lars Jensen comments: "With 11% EBIT growth, we delivered a solid first-half performance in line with our plans, supported by strong execution across most markets. While colder weather in Finland impacted volumes in Q2, this was offset by strong performance in the Western Europe and International segment. These results reflect the increasing geographical diversity of Royal Unibrew and reaffirm the strength of our multi-beverage model. We continue to focus on our growth framework, prioritizing the development of key brands while gradually reducing private label and other lower-margin businesses. With our strategic initiatives progressing well, we remain confident to deliver within our updated full-year guidance ranges and drive long-term shareholder value."
Selected Financial Highlights and Ratios
| mDKK | Q2 2025 | Q2 2024 | % change | H1 2025 | H1 2024 | % change | FY 2024 |
Volume (mHL) | 5.1 | 4.8 | 7 | 8.8 | 8.4 | 4 | 17.4 |
| Organic volume growth (%) | 7 | 1 | 4 | 3 | 5 | ||
| Net revenue | 4,438 | 4,180 | 6 | 7,644 | 7,379 | 4 | 15,036 |
| Organic net revenue growth (%) | 5 | 4 | 3 | 6 | 6 | ||
| EBITDA | 917 | 821 | 12 | 1,308 | 1,197 | 9 | 2,634 |
| EBITDA margin (%) | 20.7 | 19.6 | 17.1 | 16.2 | 17.5 | ||
| EBIT | 740 | 656 | 13 | 959 | 866 | 11 | 1,968 |
| Organic EBIT growth (%) | 11 | 17 | 9 | 16 | 15 | ||
| EBIT margin (%) | 16.7 | 15.7 | 12.5 | 11.7 | 13.1 | ||
| Free cash flow | 1,001 | 1,041 | -4 | 458 | 560 | -18 | 1,434 |
| ROIC incl. goodwill (%)* | 12 | 12 | 12 | ||||
| Earnings per share | 10.6 | 9.2 | 15 | 13.2 | 11.2 | 18 | 29.2 |
* Trailing 12 months.
Solid H1 2025 Performance
The Group delivered a solid performance in the first half of 2025, maintaining momentum in Q2.
Volumes increased organically by 4% to 8.8m hectoliters in H1 2025, driven by growth in the Western Europe and International segments. Northern Europe saw a slight decline, primarily due to cold weather in Finland during Q2. However, good July weather in Finland closed part of volume shortfall caused by the weather in Q2.
Operating in a consumer environment that remains challenging, but broadly unchanged from 2024, Royal Unibrew is estimated to have gained market share across most markets.
Net revenue reached DKK 7,644m, up 3% organically from H1 2024, with no material changes in price/mix. Organic growth was primarily driven by our new activities in Belgium and Luxemburg (BeLux), following the start of the PepsiCo partnership on October 1, 2024. BeLux contributed approximately 3.5% to the Group's volume growth and 2.5% to net revenue growth in H1 and Q2 2025.
EBIT grew organically by 9% to DKK 959m, with the EBIT margin expanding by 80 basis points to 12.5%, reflecting our ongoing efficiency initiatives. The positive margin development was achieved despite increased investments in marketing activities during the period.
In the first half of 2025 Royal Unibrew continued to make progress on the ESG agenda, delivering tangible results across key focus areas, with reduced Co2 intensity in production and improved safety performance as notable achievements.
Q2 2025 Highlights
Organic volume growth accelerated to 7%, reaching 5.1m hectoliters. The higher growth rate in Q2 was primarily driven by the timing of Easter, which fell in Q2 in 2025 and shifted some sales from Q1.
Additionally, a strike in Finland contributed to this shift, further moving sales from Q1 to Q2. Underlying market trends remained largely unchanged between the quarters.
Net revenue rose organically by 5% to DKK 4,438m in the quarter. Approximately 2.5% of the growth was attributable to the new BeLux activities.
EBIT increased organically by 11% to DKK 740m in Q2 2025, with a margin expansion of 100 basis points to 16.7%.
Cash Flow and Balance Sheet
Free cash flow for the first half of 2025 amounted to DKK 458m, compared to DKK 560m in H1 2024. The development was in line with our plans, supported by higher net profit for the period, but offset by higher capex. Net working capital was reduced by DKK 81m compared to the same time last year, and we expect a positive impact on cash flow from net working capital for the full year.
Net interest-bearing debt (NIBD) stood at DKK 6,374m at the end of H1 2025, up from DKK 5,848m at the end of H1 2024. The increase was mainly attributable to the dividend payment in Q2 2025, whereas in 2024, the dividend was postponed to the fourth quarter. Furthermore, NIBD was impacted by higher capex and the ongoing share buy-back program.
The 12-month NIBD/EBITDA ratio was 2.3 at the end of H1 2025 in line with our target level.
Share buy-back Program
A separate announcement about the launch of a new share buy-back program of up to DKK 300m is issued today. The program will be concluded no later than December 19, 2025.
Updated Financial Outlook for full-year 2025
Based on our performance in the first half of 2025 and our expectations for the remainder of the year, we are narrowing the ranges the full-year financial outlook as follows
- Net revenue growth is now expected in the range of 5-6% (previously 5-7%)
- EBIT growth is expected in the range of 8-12% (was 7-13%)
These adjustments reflect broadly normal summer weather conditions across our markets, resulting in no additional impact on activity levels. Additionally, revenue has been affected by a reduction in private label production and adverse foreign exchange developments.
The consumer environment remains challenging but stable compared to 2024, and our assumptions in this area remain unchanged.
Other assumptions for guidance are unchanged:
- Net financial expenses, excluding currency related losses or gains, of around DKK 250m (2024: DKK 301m)
- Effective tax rate of around 22% (2024: 21.5%)
- Capex in the range around 7% revenue (2024: 6%)
Conference Call
Investors and analysts can register for a conference call on August 27, 2025, at 09:00 am CEST at the following links:
- Webcast: https://edge.media-server.com/mmc/p/anpe947s
- Telephone: https://register-conf.media-server.com/register/BIac57eff270a245a4b206dc1d2f0f6b17
For Further Information on This Announcement:
- Media and Investor Relations: Flemming Ole Nielsen, +45 25 41 68 04, flemming.nielsen@royalunibrew.com
Forward-looking statements
This interim report contains forward-looking statements, including statements about the Group's sales, revenue, earnings, spending, margins, cash flows, inventories, products, actions, plans, strategies, objectives and guidance with respect to the Group's future operating results. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the following words or phrases "believe, anticipate, expect, estimate, intend, plan, project, will be, will continue, likely to result, could, may, might", or any variations of such words or other words with similar meanings. Any such statements involve known and unknown risks, estimates, assumptions and uncertainties that could cause the Group's actual results, performance or industry results to differ materially from the results expressed or implied in such forward-looking statements. Royal Unibrew assumes no obligation to update or adjust any such forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting such forward-looking statements.
Some important risk factors that may have direct bearing on the Group's actual results include, but are not limited to: economic and political uncertainty (including interest rates and exchange rates), financial and regulatory developments, development in the demand for the Group's products, introduction of and demand for new products, changes in the competitive environment and the industry in which the Group operates, changes in consumer preferences, increasing industry consolidation, the availability and pricing of raw materials and packaging materials, cost of energy, production- and distribution-related issues, information technology failures, breach or unexpected termination of contracts, price reductions resulting from market-driven price reductions, determination of fair value in the opening balance sheet of acquired entities, litigation, pandemic, environmental issues and other unforeseen factors.
New risk factors may emerge in the future, which the Group cannot predict. Furthermore, the Group cannot assess the impact of each factor on the Group's business or the extent to which any individual risk factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement. Accordingly, forward-looking statements should not be relied on as a prediction of actual results.
